A BOURDA Market vendor was overpaid some $2.512M by the Ministry of Indigenous Peoples Affairs in January of 2016 despite vouchers being prepared for a payment of $251,200, the Public Accounts Committee (PAC) was informed on Monday.
During the Committee’s meeting held in Parliament Chambers, PAC Chairman, Irfaan Ali led the questioning directed to recently-appointed Permanent Secretary (PS), Alfred King. $47.058M was expended under dietary for the Ministry and within that sum amounts totaling $6.759M was paid to a supplier who supplied fruits, greens and vegetables to the Amerindian Hostel.
It was observed by the Audit Office that payment vouchers were prepared on December 15, 2015 for an amount of $251,200. However, the cheque was processed for $2.512M on January 5, 2016 for December 31, 2015 and was collected by the supplier on January 7, 2016.

From all indication, no one detected the anomaly between the amount on the payment voucher and the cheque, as such, the supplier was overpaid $2.261M. As a result, the Audit Office recommended that the entire overpayment be recovered and systems be put in place by the Ministry and the Accountant General to avoid a reoccurrence. “Did this go through a tender process, public procurement or quotation?” asked Ali. King told the Committee in the first instance that he was advised that the supplier was selected through a quotation system. However, he was later forced to withdraw his utterance, as the PAC found same to be untrue.
“I am advised there were three submissions for the supply of fruits, greens and vegetables. I am reliably informed that the process was based on historical knowledge…Ministry’s knowledge,” said King who when asked whether his Ministry has a register of suppliers, answered in the affirmative.
“You awarded the contract based on quotations?” asked Ali, to which the PS responded, “Yes, Mr Chair”. Later in the proceedings, King said, “I’d like to retract” while adding that the information provided to the PAC at the start of the session was based on what was provided to him by the Deputy Permanent Secretary (DPS). There was no register of suppliers, and the supplier, Devanauth Sugrim, who operates out of Section ‘J’ Bourda Market, Georgetown, is still listed as a supplier to the Ministry of Indigenous Peoples Affairs.
Meanwhile, it should be noted that checks revealed that the details for the payment were entered into the Integrated Financial Management and Accounting System (IFMAS) on December 29, 2015, by a staff of the Ministry and the amount was recorded as $2.512M instead of $251,200.

The Auditor General’s (AG) department explained that at the end of the year, cheques are prepared for all transactions in the system so as to facilitate the closure of the accounting cycle for that year and as such, the variance would not have been detected at that time. However, a payment arrangement was being worked out with Sugrim and the AG’s department to recover the difference.
PAC member, Jermaine Figuiera, asked King to state the measures in place to prevent reoccurrence to which the PS responded that it was a slippage, and he hopes no such slippage occurs again. Member Juan Edghill asked whether the $6.759M was allocated for the entire year or for a specific period.
King said he was unsure, but noted that it is suggested that the $250,200 was owed to the supplier for four months (August 31 to November). However, Ali said based on records before him, the allocated sum was for July to September 2015. What the PAC noted was that two persons were shortlisted for the supply of greens, vegetables and fruits to the hostel, through the National Procurement and Tender Administration (NPTAB).
“You have a supplier but that approval is talking about two suppliers,” said Ali,“ who then asked for an explanation.

“You forsake one for the other? … You have the former PS here and I don’t see you calling on him,” said Ali. “Mr Chair, I cannot explain right now the $6.759M,” a statement which prompted the PAC Chair to ask King, if he was ill-prepared to face the PAC. King, in his defence said the manner in which the paragraph was structured makes the situation a bit confusing.
“What happened to the other supplier?” asked Ali to which King responded, “Mr Chair, I can assure you that this needs a lot more work than is presented by the DPS.”
Edghill, recognising that King was not the PS at the time of the report asked, “Could I be assured that there is no purchase at any one time from this supplier in excess of $250,000? And could you tell me, how many such purchases were made during the period?”
Based on the records I am seeing… I am seeing two transactions over that value,” said the accounting Officer. Edghill described the situation as “open shopping” and questioned whether the supplier provides the greens, fruits and vegetables and after it is supplied the payment is made, or a cash advance is applied for and the supplier purchases the items and returns with receipts.
It was disclosed that the supplier was paid after the goods were supplied; a statement which prompted the PAC Chair to calculate that the Ministry was spending $540,000 monthly on the supply of the said items to the hostel. King noted too that between 150 and 180 Amerindians are catered for at the hostel, a statement which caught members of the PAC by surprise. Of the total $47.058M allocated for dietary needs, just over $40M remained after the deduction of $6.759M.

“Is any amount out of that spent on the hostel?” asked Ali, who was told no. However, the PS was not in a position to provide the PAC with a breakdown of the $40,299,000. The Committee broke for about 35 minutes so that the PS and his team could provide the requisite information; unfortunately this was not done. Following the break, it was determined that given the number of instances to which King was misguided by his team, it would be best, he be given time to acquaint himself with the information requested by the PAC. He is required to submit the requested information soon.